Coal India to be dark horse of 2016: Pankaj Sharma

DEc 28: In an interaction with ET Now, Pankaj Sharma, Equirus Securities, said Coal India is a company which is going to do very well on fundamentals and the core business in 2016. Excerpts:

ET Now: What do you think is a dark horse for 2016?

Pankaj Sharma: One stock which I would highlight is Coal India. It is a large cap, but if you look at this company, I think some fundamentals are changing for them. In the last five to seven years, they have been struggling, with very little volume growth. This is getting better-both in terms of their production as well as evacuation. Evacuation, which has been a big challenge for them, is improving steadily. Also, in terms of their own production, the situation is getting better despite all the technical factors. Fundamentally, this is a company which would do very well on the production and volume front. Also, if you look at the prices, the kind of correction which we have seen in last 18 months or so in the global commodity prices and in line with that in the imported coal prices, that is largely done now. So we are not really going to see a significant further decline in the prices, even in the e-auction segment. Overall, this is a company which is going to do very well on fundamentals and the core business.